CURRENT HOMESTAY REGULATIONS
Currently, homestays allow for rental of five (5) guest rooms and requires a resident manager on-site. Whole-house vacation rentals are not allowed. In the County’s designated development areas, homestays are only allowed in single family houses, not in townhouses, condos, or apartments. In the County’s designated rural area, up to 10 guest rooms are allowed under certain circumstances and they don’t have to all be in a single family house.

TAX CODE
In March 2017, the Board directed staff to prepare a tax code change so that the transient occupancy tax (sales tax paid by guests staying at hotels, motels, and campgrounds) would also be applied to homestays in Albemarle County. In addition, the Board asked staff to reach out to the community and identify areas where the zoning ordinance might broaden opportunities for residents to engage in room rentals. At its June 14, 2017 Board meeting, the Board of Supervisors amended the County Code §15-900 and §15-901 to enable the County to impose taxes on homestays, previously not included in this regulation. They also amended County Code §8-616 to explicitly list short-term rentals on the list of businesses subject to the business, professions, and occupations licensing (BPOL) tax requirements. As a result of these amendments, current operators who are not presently in compliance will have to come into compliance with applicable zoning regulations and secure the required permits. Learn more about how to become compliant here.

PROPOSED ZONING ORDINANCE CHANGES
The County’s goals of protecting existing neighborhoods, ensuring the availability of affordable housing, and not commercializing the rural areas are being reviewed for balance with its goals for tourism and economic development.

The Board is currently discussing the following proposed regulations regarding Homestays.

The Board held a work session on the ZTA to define parameters for potential zoning changes. The parameters set by the Board included:

1) Consider amendments to deal with periodic whole house (owner not present)2) Consider expanding zoning regulations to include allowance of transient lodging in attached dwellings such as townhomes and apartments/condominiums.

A series of public meeting were held to gather input on potential changes to allow more opportunities for residential transient lodging.At each of the community meetings a survey was taken. Comments were also accepted via an online form.